New Jersey's Assembly Housing and Local Government Committee recently approved inventory legislation that would transform foreclosed properties into affordable housing.

The bill seeks to create a new state agency within the New Jersey Housing and Mortgage Finance Agency that would buy foreclosed properties and turn some into affordable units.

Advocates of the proposed inventory compliance change pointed out that maintaining an excess inventory of homes has a negative impact on the banks and other lenders that own them, consequently slowing down economic reinvigoration, NJ Today reports.

"This bill provides a practical solution for residents who have limited financial means and are in need of affordable housing, and for communities that are dealing with the blight, reduced property values and illegal activity that is synonymous with vacant properties," said Assemblyman Jerry Green, the Union Democrat who chairs the committee.

South Orange Democratic Assemblywoman Mila Jasey called the bill a "truly transformative measure" that would provide "a shot in the arm to our economy," as quoted by the news source.